Amaravati | September 18, 2026- Mazagon Dock Shipbuilders Limited (MDL), a Navratna Defence PSU under the Ministry of Defence, has signed an MoU with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to develop a modern greenfield shipyard at Dugarajapatnam.
The MoU was signed in the presence of Chief Minister Shri N. Chandrababu Naidu by Capt. Jagmohan (Retd.), Chairman & Managing Director, MDL, and Shri Praveen Adhithya C.V., IAS, Managing Director, NSHIP-AP.
Speaking on the development, Chief Minister Chandrababu Naidu said Andhra Pradesh is committed to being at the forefront of India’s ambition to become one of the world’s top five shipbuilding nations by 2047. He said the State will leverage its long coastline, strategic location and industrial ecosystem to drive growth in the maritime sector.
“India has set an ambitious vision of becoming one of the world’s top five shipbuilding nations by 2047. Andhra Pradesh is committed to being at the forefront of this journey by leveraging its long coastline, strategic location and industrial ecosystem,” the Chief Minister said.
CM Naidu said the Dugarajapatnam shipbuilding cluster, with MDL as the Anchor Shipyard, will position Andhra Pradesh as a major shipbuilding hub and attract investments and ancillary industries to the State.
He said the project will also create large-scale employment and new opportunities in shipbuilding, marine engineering, manufacturing, logistics and other allied sectors.
The Government of Andhra Pradesh is envisaging the development of a greenfield Shipbuilding-cum-Port Cluster at Dugarajapatnam. The Techno-Economic Feasibility Report estimates the Shipbuilding and Ship Repair Yard at approximately ₹29,254 crore and the Port at ₹9,513 crore. The Port is proposed to be developed by the Government of India.
Under the MoU, MDL envisages an investment of around ₹15,000 crore over the next five to seven years, subject to the required approvals and clearances. The project is expected to generate direct and indirect employment for around 45,000 people in Andhra Pradesh.
The proposed shipyard will have a design capacity of 1.2 million Gross Tonnage per annum, with scope for further expansion based on market requirements. It will build commercial vessels including tankers, bulk carriers, container ships, LNG carriers and other large, specialised vessels.
The shipbuilding cluster is being developed under the Government of India’s Shipbuilding Development Scheme (SbDS). NSHIP-AP, a Special Purpose Vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, has identified MDL as the Anchor Shipyard.
Capt. Jagmohan (Retd.), Chairman & Managing Director, MDL, said Dugarajapatnam has the scale and maritime potential to develop a globally competitive shipyard. He said MDL aims to create a modern facility serving both domestic and international markets.
Mr Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority, said VPA, as a 50% shareholder in NSHIP-AP, is committed to the development of the shipbuilding cluster and will support coordination with the Government of India and other Central Government agencies.
Mr Kona Sasidhar, IAS, Secretary, Infrastructure & Investment, Government of Andhra Pradesh, said the selection of MDL as the Anchor Shipyard is an important milestone in the State’s maritime development. He said the project has the potential to create a major shipbuilding and ancillary ecosystem at Dugarajapatnam.
The Andhra Pradesh Maritime Board will facilitate land, infrastructure and statutory clearances required for the timely development of the project.
